On May 19, 2016, the Competition Bureau (Bureau) announced that
it has launched a market study into technology led innovation in
the Canadian financial services industry (FinTech); FinTech was
identified as a subject matter of interest at the Bureau's
workshop on emerging competition issues held in January 2016.
The study raises important considerations not only for FinTech
companies, but for the financial services industry broadly.
Focusing on interactions between consumers and small and
medium-sized businesses and financial services, the study will
consider innovations in peer-to-peer banking, mobile wallets and
payments, crowd-funding and online-based financial advisory
services. While the market study's scope is subject to change,
the Bureau does not intend to consider the implications of
blockchain technology for the financial services sector, nor will
it consider an extensive list of other topics, including currencies
and crypto-currencies such as Bitcoin, insurance, payday loans,
loyalty programs or deposit taking.
Absent any express statutory mandate, the Bureau has indicated
that the study aims to answer the following key questions:
What has been the impact of technology‑led innovation on
the competitive landscape? What is happening to competition? How
will innovation impact competition in the future?
How will consumers benefit from FinTech?
Are the consumer protections in place today enough to adapt for
the future? What additional protections should be put in place for
consumers? Is there a need for greater transparency in fees?
What are the barriers to entry, expansion, or adoption for
FinTech companies? Are they regulatory or structural?
What is the current state of the regulatory framework for
financial services? Does it support or inhibit competition and
innovation? Are changes required to encourage greater competition
and innovation in the sector?
What issues should be considered when developing or amending
regulations to ensure competition is not unnecessarily
Past experience and Bureau commentary, notably references to
recent reports that FinTech adoption in Canada has lagged other
jurisdictions, suggest that the study's focus will be on
regulatory or structural barriers or hindrances to the emergence of
competition from FinTech companies or the adoption of FinTech by
existing financial services companies.
The FinTech market study reflects the Commissioner of
Competition John Pecman's belief in the Bureau's role as a
competition advocate, and is another example of the Bureau's
focus on the role of innovation and its effects on competition,
particularly in regulated industries. In that respect, the current
focus of the market study parallels some of the Bureau's recent
focus on the appropriate scope of regulation for ride sharing
services. The study raises important considerations for both
FinTech companies and the financial services industry; for example,
will the Bureau recommend — as it did regarding ride sharing
services — that regulations be relaxed for existing industry
participants while simultaneously being extended to the FinTech
sector? What will be the nature of the Bureau's advocacy in
this regard — what levels of government and which regulators
will any Bureau advocacy extend to?
Given the broad scope of the financial services sector, and its
importance to consumers and for the Canadian economy, it will be
interesting to see how the Bureau achieves a balance between
protecting consumers, promoting innovation, and ensuring a
"level playing field" for all participants in the
financial services industry.
The Bureau is inviting interested stakeholders to file
submissions and/or indicate whether they wish to participate in the
market study by June 30, 2016. The market study's results will
be published in the spring of 2017.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Please join us for a discussion of the legal and business aspects involved in the planning, construction and completion of a development project in downtown Toronto. The panel will use an office tower as a case study, but the analysis will be applicable to commercial and industrial developments, including hotels and shopping centres.
Strong negotiation skills are key to career advancement and success. Being able to help others overcome differences to reach mutually beneficial agreements is an essential leadership skill. Collaborative negotiation, the most sophisticated and effective negotiation approach, is a natural core competency of many women, although it is often difficult to master.
During the program, preparation for complex negotiations using both a competitive and collaborative mindset will be discussed. Strategies for more easily uncovering and using mutual interests for maximum outcome will be presented. Ultimately, you will optimize and build upon your negotiation strengths for greater success at work.
Please join us as we address recent developments in record keeping, new provisions impacting in-house law clerks, and record keeping as it pertains to intellectual property. Providing a high-level overview of record keeping and minute books, we will touch on best practices for collecting, organizing and preserving documents.
The threshold for certain pre-closing net benefit reviews under the Investment Canada Act (ICA) and the threshold for a pre-closing merger notification under the Competition Act have been increased for 2017.
Regular prices, sale prices, clearance sales – these terms are ubiquitous in the retail world and are a familiar component of marketing strategies intended to convince consumers that now is the best...
The Competition Bureau (the "Bureau") recently released for comment its draft bulletin on Information Requests from Private Parties in Proceedings for Recovery of Loss or Damage (the "Bulletin") which addresses the Bureau's stance on requests for confidential information in its possession arising from private damages actions under section 36 of the Competition Act (the "Act").
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).